The Role of WCIT is to engage the business community and others in actively supporting policy changes that increase Washington’s international economic competitiveness. Why Exports Matter because $64 billion in 2011 from commodities (Supports at least 1 in 4 jobs in WA) WA ports handle 7% of U.S exports & WA is the 5th largest commodity exporting state (behind Texas, California, Florida and New York)

1. Increasing Washington’s International
Competiveness Through Policy
Seattle Propeller Club
March 21, 2012
Increasing Washington’s International Competiveness
March 8, 2012

2. About WCIT
The Washington Council on International Trade is
dedicated to growing our state's economy through
public policies favorable to expanded opportunities in
the global marketplace.
WCIT members are farmers, manufacturers, retailers,
service providers, non-profit organizations and
individuals who support a strong trade policy that
benefits Washington’s small, medium and large
companies and creates jobs for Washington residents.
Increasing Washington’s International Competiveness
March 8, 2012
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3. The Role of WCIT
•Educate Washington’s elected officials about trade policy
issues that impact Washington’s international economic
competitiveness.
•Engage the business community and others in actively
supporting policy changes that increase Washington’s
international economic competitiveness.
•Serve as a repository of data and information on
international trade in Washington.
Increasing Washington’s International Competiveness
March 8, 2012
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4. What is Trade?
All International Business is International Trade
• Aerospace & • Professional Services
Manufacturing • Global Health
• Agriculture • Int’l Tourism
• IT • Int’l Education
• Retail
Increasing Washington’s International Competiveness
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5. Why Exports Matter
• $64 billion in 2011 from commodities (Supports
at least 1 in 4 jobs in WA)
• 202,300 jobs directly supported by exports
• Estimated $16+ billion in services exports
• 95% of consumers are outside the U.S
• 90% of exporting companies are SMEs
• WA ports handle 7% of U.S exports & WA is the
5th largest commodity exporting state (behind
Texas, California, Florida and New York)
Increasing Washington’s International Competiveness
March 8, 2012
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6. Why Imports Matter
• $86 billion in 2011 from commodities
• 250,000 state jobs supported by WA
ports
• Foreign direct investment employs
93,200 Washington workers
• Increased supply chain
competitiveness for Washington’s
retailers and manufacturers
• Increased capacity for exports
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7. WA Trade Advantages
• Natural deep water ports
• Good river navigation
• Diverse industries
• Geographic proximity to
Canada & Asia
• High percentage of foreign
born workers and students
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8. Top Export Commodities
Increasing Washington’s International Competiveness
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9. Top Trade Partners
Increasing Washington’s International Competiveness
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10. Ex-Im Bank Reauthorization
• The Export-Import Bank of the U.S (Ex-Im Bank) is a credit agency
assisting companies, large and small, to export goods and services
to international markets.
• Ex-Im Bank’s authorization expired on September 30, 2011.
Congress has extended its operations through May 31, 2012.
• In 2011, Ex-Im Bank lent Washington approximately $7 billion to
74 WA companies, including 56 small businesses. In return, more
than $16 billion of export sales were made.
Increasing Washington’s International Competiveness
March 8, 2012

11. Russia PNTR
• Russia is the world’s 11th largest market with a large middle class
consumer base, but it is only the United States’ 37th largest
trading partner.
• Washington is one of the top 5 states in the country in terms of
exports to Russia, Washington’s exports to Russia grew 80% in
2011, while the state’s exports to the world increased by only
16%.
• United States must approve “permanent normal trade relations”
(PNTR) status with Russia to take advantage of this market
opportunity (because of Jackson-Vanik).
Increasing Washington’s International Competiveness
March 8, 2012

12. Harbor Maintenance Tax
“Land Border Loophole”
• The Harbor Maintenance Tax (HMT) is a federal tax imposed on shippers
based on the value of the goods being shipped through ports.
• HMT’s “land border loophole”: tax is not assessed on importers who
route cargo through non-U.S. ports and then move their cargo into U.S.
markets by land.
• The “land border loophole” makes it cheaper for international importers
to divert cargo to non-U.S. ports, such as those in British Columbia, to
avoid the HMT in Washington.
Increasing Washington’s International Competiveness
March 8, 2012

13. Trans-Pacific Partnership
Regional Trade Agreement
• Asia-Pacific regional trade agreement being negotiated by the
United States, Australia, Brunei, Chile, Malaysia, New Zealand,
Peru, Singapore, and Vietnam.
• Asia-Pacific region is the largest market for U.S. exports (including
2/3 of U.S. agricultural exports). In 2010, 69% of Washington
exports went to Asia-Pacific countries.
• TPP could serve as a framework into which other Asia-Pacific
countries might eventually enter. (Japan, Canada, Mexico and
South Korea have already expressed interest.)
Increasing Washington’s International Competiveness
March 8, 2012

14. Affordable Footwear Act and the
US OUTDOOR Act
• AFA would eliminate most shoe import tariffs ; US OUTDOOR Act would
eliminate disproportionately high tariffs on “recreational performance
outerwear.”
• These tariffs were originally implemented to protect domestic industries that
no longer exist, which means the only impact of these tariffs today is to make
these products more expensive for U.S. consumers.
• Washington is home to a significant number of retailers that import footwear
and performance outerwear: REI, Amazon, Nordstrom, Brooks Sports and
Eddie Bauer. Senators Murray and Cantwell are co-sponsors of the AFA, and
Representative Reichert introduced the House version of the US OUTDOOR
Act.
Increasing Washington’s International Competiveness
March 8, 2012

15. Increased International Visitors
Through Travel Visa Reform
• The current U.S. visa application process is a huge barrier to trade
with some of the world’s fastest growing markets, such as China,
India and Brazil.
• A visa application can take as long as 145 days in Brazil and 120
days in China. As a result, the United States welcomed the same
number of travelers in 2010 as it did in 2000.
• The United States would have welcomed 78 million more visitors
– generating $606 billion in spending and 467,000 jobs – if our
country had simply kept its historical share of world travel
growth.
Increasing Washington’s International Competiveness
March 8, 2012

16. Increased U.S. Competitiveness in
Trade with China
• China is Washington state’s top trading partner, and the destination of over 17% of
Washington’s exports in 2011. These figures don’t capture the economic impact of the
global supply chain relationships, nor the new Chinese joint ventures being developed
by a diverse mix of Washington goods and services firms.
• US & China have an increasingly successful and productive relationship, yet significant
room for progress remains – from disagreements over currency valuation to improved
intellectual property rights protections.
• Rather than efforts to "punish" China through retaliatory tariffs, the best way to
achieve a sustainable, competitive U.S.-China trade relationship is through
enforcement of existing rules along with engagement toward mutually beneficial
changes.
Increasing Washington’s International Competiveness
March 8, 2012

17. Other Potential Policy Issues
Federal Issues State Issues
•Trade Promotion •Investment in freight
Authority mobility
•Export controls reform •State Commerce &
•Investment in freight Agriculture foreign sales
mobility promotion
•Increased bilateral trade •International Marketing
with the EU budget (tourism, FDI)
Increasing Washington’s International Competiveness
March 8, 2012

18. How Many WA Jobs Are Tied to Trade?
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19. Questions?
www.wcit.org
@WashingtonTrade
erics@wcit.org
206.389.7273
Increasing Washington’s International Competiveness
March 8, 2012